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LD 1082

An Act To Invest In Maine'S Families And Workforce By Amending The Real Estate Transfer Tax

132nd Legislature (2025-2026) Introduced by Vicki Doudera and 4 co-sponsors

Raise the real estate transfer tax on value over $1,000,000 and fund housing via a new Housing Production Fund, while exempting MSHA first-time buyers.

The Bill was in the possession of the House when the Legislature adjourned Sine Die and was placed in the Legislative Files. (DEAD)
#miscellaneoustaxes #rate #realestatetransfertax
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Bill Summary · LD 1082

Summary — LD 1082: "An Act To Invest In Maine's Families And Workforce By Amending The Real Estate Transfer Tax"

Status: DEAD — The bill was in the possession of the House when the Legislature adjourned sine die and was placed in the Legislative Files (06/25/2025).

Purpose

LD 1082 would have modified Maine’s real estate transfer tax to generate new and redirected revenue for housing programs and to exempt certain first‑time homebuyers. The stated goal was to invest in housing production and supports for families and the workforce.

Key provisions

  • Increase the real estate transfer tax rate for the portion of a property’s value above $1,000,000. Two committee amendment variants were analyzed:
    • LR0365(03): increase to $4 per $500 of value above $1,000,000.
    • LR0365(02): increase to $6 per $500 of value above $1,000,000.
  • Establish an exemption from the real estate transfer tax for homes purchased under the Maine State Housing Authority’s (MSHA) first‑time home‑buyer mortgage loan programs.
  • Redistribute how real estate transfer tax receipts are allocated beginning in FY 2026‑27:
    • Create a new Housing Production Fund within MSHA that receives ongoing transfer tax revenue.
    • Reduce ongoing allocations to the Housing First Fund and the Housing Opportunities for Maine (HOME) Fund to support the new fund.
  • One‑time General Fund appropriation of $79,500 (FY2025‑26) to the Bureau of Revenue Services for computer programming to implement tax law changes.

Fiscal impact (from official fiscal notes)

Two amendment scenarios were costed; figures are statewide, by fund, and by fiscal year projections.

  • LR0365(03) — $4 per $500 above $1M

    • FY2025‑26: General Fund revenue +$721,000; Other special revenue (Housing First + HOME) +$1,959,000.
    • FY2026‑27 (and projections): General Fund net change approximately –$56,000 (small decreases thereafter); Other special revenue increases to $5.319M (FY26‑27), rising to ~$6.519M by FY28‑29.
    • Redistribution (beginning FY26‑27): Creates a Housing Production Fund receiving ~$15.314M; Housing First Fund reduced by ~$1.212M and HOME Fund reduced by ~$8.783M in FY26‑27.
    • One‑time GF appropriation: $79,500 in FY2025‑26.

  • LR0365(02) — $6 per $500 above $1M

    • FY2025‑26: General Fund revenue +$1,638,000; Other special revenue +$4,473,000.
    • FY2026‑27 (and projections): General Fund revenue increases of ~$1.388M (FY26‑27) and similar in later years; Other special revenue rises to ~$10.503M (FY26‑27) and higher subsequently.
    • Redistribution (beginning FY26‑27): Creates a Housing Production Fund receiving ~$17.258M; Housing First Fund reduced by ~$46,000 and HOME Fund reduced by ~$6.709M in FY26‑27.
    • One‑time GF appropriation: $79,500 in FY2025‑26.

(Notes: fiscal notes show detailed line items for appropriations and projected receipts to multiple funds; these figures reflect modeled revenue and allocation changes associated with the amendments.)

Who would be affected

  • Buyers of high‑value residential and commercial real estate: properties with sale prices above $1,000,000 would pay a higher marginal transfer tax on the value exceeding $1,000,000.
  • First‑time homebuyers using MSHA programs: purchases under MSHA first‑time home‑buyer mortgage loan programs would be exempt from the transfer tax.
  • State housing funds and programs: creation of a Housing Production Fund and changes in allocations would shift resources among MSHA’s funding streams (Housing First Fund, HOME Fund, and the new fund).
  • Bureau of Revenue Services: administrative/IT programming work funded by the one‑time appropriation.

Legislative history and timeline

  • Introduced: 03/14/2025; referred to Committee on Taxation.
  • Work session: 04/17/2025 (divided report).
  • Committee reported out with amendments (OTP‑AM / divided outcomes) and fiscal notes prepared (06/12/2025).
  • Placed into legislative files when the 132nd Legislature adjourned sine die on 06/25/2025 (bill did not become law).

Implementation

  • Tax rate changes and allocation redistribution were modeled to begin affecting receipts in FY2025‑26 and to change distributions beginning FY2026‑27.
  • The BRS appropriation ($79,500) was intended for FY2025‑26 to support system changes necessary to administer exemptions and rate changes.

If you want, I can produce a one‑page handout comparing the two amendment scenarios side‑by‑side (tax rates, FY25‑26 revenue, FY26‑27 redistribution totals).

Compiled from official sources — confirm details with the bill’s official record.

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